University Townships and Girls' Hostels: Five educational zones and district-level accommodation announced

Key facts

• Union Finance Minister (FM) Nirmala Sitharaman announced the establishment of five university townships along large industrial and logistic corridors in the Union Budget 2026-27.
• The townships will physically integrate universities, colleges, research centres, skill centres, and residential complexes into a single ecosystem.
• The government will assist states via an obstacle road to develop these educational zones to minimize fragmentation between academic study and practical employment.
• The Budget proposes the introduction of girls' hostels in all districts of the country to be financed through the Viability Gap Fund (VGF).
• The township programme is aligned with the National Education Policy 2020 (NEP 2020) objectives of multidisciplinary learning, skill development, and gender inclusion.
• These zones are intended to improve local economies and build innovation clusters by co-locating industries with higher education and research institutions.
• The government has set the total capital expenditure target for the Financial Year 2026-27 (FY27) at ₹12.2 lakh crore.